How the press affects IPOs

The debut of Russian telecoms company Megafon is a classic example of what happens when the build-up to a listing turns sour

By

Giles Turner

Updated: December 10, 2012 1:56 p.m. GMT

Megafon, the Russian telecommunications company that listed on the London Stock Exchange a fortnight ago, faced a battle in the press running up to the deal that could have cost it up to 15% of its value.

Negative coverage ranged from concerns over corporate governance to the dragging up of past Russian failures. But the deal breathed life into the London IPO market at a time of dire dealflow, leading non-executive director Paul Myners to speak of London's "arrogant stance" towards overseas listings. Megafon is...